Solent Pathway Campus Ltd v Revenue and Customs (VAT - exemption for supplies of education) [2025] UKFTT 596 (TC) (09 May 2025)

Solent Pathway Campus Ltd v Revenue and Customs (VAT - exemption for supplies of education) [2025] UKFTT 596 (TC) (09 May 2025)

SPCL is a college of Solent University within the meaning of Note 1(b) to Schedule 9, Group 6 of VATA 1994, as the five SAE factors are substantially met and the educational activities are sufficiently integrated with the university; therefore, SPCL is an eligible body and its supplies of education are exempt from VAT.

Citation
[2025] UKFTT 596
Parties
Appellant: Solent Pathway Campus Limited; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
09 May 2025
Procedural Posture
VAT Exemption Appeal / First Tier Tribunal (tax) Final Judgment
Outcome
Appeal allowed
Legal Topics
VAT Exemption, Definition of Eligible Body, Supplies of Education, Teaching English as a Foreign Language (tefl), Integration Test for Colleges of Universities
Tax Law Education Law European Union Law VAT Exemption Definition of Eligible Body Supplies of Education Teaching English as a Foreign Language (tefl) Integration Test for Colleges of Universities

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Parties

Solent Pathway Campus Limited

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

VAT Exemption Appeal / First Tier Tribunal (tax) Final Judgment

Legal Issues

  1. 1 Whether Solent Pathway Campus Limited (SPCL) is an 'eligible body' under Note 1(b) to Schedule 9, Group 6 of VATA 1994 as a 'college' of a UK university
  2. 2 Alternatively, whether SPCL qualifies as an 'eligible body' under Note 1(f) as a provider of TEFL
  3. 3 Whether the supplies made by SPCL are exempt from VAT

Ratio Decidendi

SPCL is a college of Solent University within the meaning of Note 1(b) to Schedule 9, Group 6 of VATA 1994, as the five SAE factors are substantially met and the educational activities are sufficiently integrated with the university; therefore, SPCL is an eligible body and its supplies of education are exempt from VAT.

Court Disposition

Appeal allowed

Orders

  • HMRC's decision refusing the VAT exemption is set aside
  • SPCL's supplies of education are exempt from VAT for the relevant periods